Modern businesses, such as e-commerce software provider Unicommerce and omnichannel retailer FirstCry, made a spectacular stock market entrance on Tuesday, highlighting a healthy primary market. FirstCry’s parent company, Brainbees Solutions, commenced trading on the BSE for ₹625 per share, 34% higher than the ₹465 price of its IPO (initial public offering). Unicommerce Esolutions, situated in Gurugram, launched their products at ₹230 each, which is more than twice the initial price of ₹108. At ₹678.2 at the closing of trading, FirstCry has increased its market capitalization to ₹35,213.6 crore, a 46% increase from the IPO price.
Reaching The IPO Launch Milestone
Despite being considerably higher as compared to its issue price, Unicommerce did not maintain the listing gains, closing approximately 9% lower than its debut of ₹210.05. “Listing gains, subscription, oversubscription, do not matter that much to me personally,” said Supam Maheshwari, cofounder and CEO of Pune-based FirstCry, telling ET on the fringes of the listing ceremony. What counts is reaching this IPO launch milestone, which makes our family and extended families feel proud of us. Performance will undoubtedly always come before the stock market’s numerical results.”
The Final Day Of The Bidding
With a subscription of more than 12 times, the initial public offering (IPO), which closed on 8th August, went smoothly on the final day of the bidding process. One of this year’s most subscribed initial public offerings (IPOs) was Unicommerce’s ₹277 crore offering, which was about 170 times more than the number of shares available. The company didn’t bring up any further capital through the IPO; it was solely an offer for sale. “Back in the early phase of 2015-16, we were a tiny, budding software business with minimal revenues & very few customers,” said Rohit Bansal, a non-executive director and promoter of Unicommerce who cofounded Snapdeal. The company could have gone out of business at any time for multiple reasons. It had to defend its existence every single day.
